Solved: Demand in a market is found to be inelastic is the market, Business Economics

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Demand in a market is found to be inelastic is the market

1. Demand in a market is found to be inelastic. Is the market necessarily an antitrust market?

2. Suppose there are two regions, A and B. Transportation costs for a product between the two regions is t . If pB + t > p A , price correlations would suggest that the two regions are not part of the same market. Is this necessarily true? If p A + t > pB , is A an antitrust market?

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Business Economics: Demand in a market is found to be inelastic is the market

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